India Mulls for New Banks: After nearly a decade, there is a discussion between the Finance Ministry and the RBI that how to increase the banking sector so that the pace of long -term development within the country can be promoted. After this, licenses for new banks will be issued soon in India. Bloomberg has told about this in its report.

Licenses will be issued for new bank

According to the report, there is talk of taking several steps to complete the country’s ambitious development plans in the coming decades, including opening a way for more and more strong banks. In this, this option is also being considered that big companies should be allowed to apply for bank license along with ban on share holdings. Apart from this, there is a discussion on encouraging non -banking financial companies to convert to full banking service. Also, the convenience of foreign investors is being considered.

Why was there a need?

However, no comment has been received from the RBI or the Union Finance Ministry in this regard. But its reaction can be clearly seen in the market. The index of the Nifty PSU Bank which fell 0.8 percent during the initial trade, jumped up to 0.5 percent in the afternoon. This year it has increased by about eight percent.

Significantly, after the year 2014, a bank license has not been issued in the country. The report said that in the year 2016, many industrial and commercial houses had sought a license for bank permits, but now it is being considered again. However, it would be a sensitive and big decision to allow business houses to open banks.

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